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Zoey_JD
Zoey_JD, Criminal attorney
Category: Fraud Examiner
Satisfied Customers: 23561
Experience:  Active member of the NYS bar since 1989
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Do you have any information about takingprofits.com? I wrote

Customer Question

Do you have any information about takingprofits.com? I wrote to them and received a trading record of their performance. Option trades claiming a very high success rate and high return. I've traded options for a while, most unsuccessfully, and most newsletters produce losses. Depends on your definition of a scam, but people dispensing trading advice who don't know what they are doing, and that ends of costing you a fortune fits my definition. Various reviews of takingprofits I have seen online. Many are effusive of the too good to be true variety.
Submitted: 1 year ago.
Category: Fraud Examiner
Expert:  Zoey_JD replied 1 year ago.
Hello, Binary option trading in the US is unlawful unless you do so through a company which is subject to regulatory oversight by the Commodity Futures Trading Commission. Taking Profits is an unregulated company. Frankly almost all binary brokers are unregulated, which means that unlike other types of investments, these companies can make their own rules. Many are outright scams. We hear horror stories daily from people who deal with unregulated binary brokers and who lose their investments to unauthorized trades or who can't pull their winnings out. Financial regulatory agencies the world over warn of binary option trading with unregulated brokers for this reason. The best that I can say about this one is that it has been around for a long time. The domain name has been registered since 1998, according to its WHOIS. Whether that's because it is ethical or because nobody can find them to shut them down, I cannot say. According to their WHOIS information, they are a Delaware company, but that's not corroborated by the Delaware Secretary of State, which has no record of any such company on their corporate register. I find no scam reports. Scamadviser.com gives them a high trust rating and says their site is safe to use. Regardless, as they are not regulated, your rights are limited if there is a problem. It doesn't help that the only contact information they give you is their email address. I suggest, however, that you'll probably have no better luck with this company than with others. Binary option trading is closer to gambling than to real investing. Over the long haul, the odds are against you. Good luck, however.
Customer: replied 1 year ago.
Hello Zoey,
Thanks for your response. This is my first time to use Just Answer. I find it an intriguing service. I can think of many times pre-internet when if I just knew the answer to one question it could have saved me a lot of trouble. Maybe the future has potential.I am bit confused by your answer. What do you mean binary options are illegal? I have been trading options for a while, sometimes on my own, sometimes with the help of these kind of newsletters, sometimes using autotrade features with my broker. I have heard conflicting info that Autotrading is illegal, but even the big brokers like TDAmeritrade offer it.I understand that the industry is unregulated, and I'm kind of on my own with these newsletters. Many are terrible. The worst are those that do well for a while and gain your confidence before it ultimately crashes and blows up your account. So I'm always looking over my shoulder. Since I don't know you I can admit what I would never confess to my family -- I've lost over $600K in the past several years from one kind of options or another. A friend of mine who got into the game with me has lost $3M.Call it a gambler mentality if you will, but I hope to eventually get back to where I started if not come out a winner in the end. I've found a few newsletters that are working well for me. So far this year I'm up about 51% and have my fingers crossed. I can confirm that while many of these may be losing propositions, some really do work. Actually my cheapest newsletter advertises that they have had 34 straight weeks of winning trades and never a losing trade of more than 15%. That is absolutely true.Taking profits may not necessarily be a worthwhile service. I'll give them a pass for now. But options investing (ok properly called speculation) is absolutely the way to make money if you know what you are doing. This is how the investment banks and hedge funds do it. Obviously I don't feel confident yet that I know what I am doing. What is needed is some independent body to evaluate all these. There are websites that give reviews but those websites and their reviews are also suspect.Last question, I'm not sure what you mean by binary options. I trade different options strategies. Do you mean binary just in the sense they could win or lose like any investment?Thanks,Richard
Customer: replied 1 year ago.
What's a 'binary broker'?
Customer: replied 1 year ago.
OK, I looked up binary options and understand the concept. This is not what I am trading, although I do spreads and other options combinations which may be structured like binary options that may either expire worthless or bring in a defined credit. The difference is that I don't use an external binary broker who holds my cash and positions, and I make the trades myself or with the assistance of autotrading through a traditional broker using newsletters. I've never traded binary options, but it sounds like you are limited how to structure them, such as winning if it is in the money (ITM), losing if it is out of the money (OTM). It is smarter to play it the other way around. I only short credit spreads so that I win as long as it stays OTM, and I can close or roll/adjust at any time. Since 85% of options expire worthless it is better to be short.
Expert:  Zoey_JD replied 1 year ago.
Sorry for the delay, but I am located in New York City and your response to my question came after I'd gone to sleep for the night. Very broadly, binary option trading is when you bid that the price of particular asset you have invested in such as a stock or commodity is either going to rise or fall. As I indicated, it is closer to gambling than it is to other types of investment trading. It is not unlawful, but for the most part it is not regulated either, and any software or platform that supposedly will make your fortune, will work no better than any other type of handicapping software or platform. If it were a sure thing, we would all be wealthy, but it is not. This is a very high risk enterprise, and you're correct, it is not for the uninitiated.
Customer: replied 1 year ago.
Thanks for the reply. You may be an expert in your field, but you don't seem to know anything about options trading.
Customer: replied 1 year ago.
I am not trading binary options, and Taking Profits is not a binary broker. So I don't know how to give any value to your answer.
Expert:  Zoey_JD replied 1 year ago.
You're correct. I don't pretend to know the ins and outs of investment strategies. What I am is a criminal lawyer with significant experience handling fraud matters. Takingprofits said it traded in options. If it doesn't have to do with binary options, then you can ignore that part of my answer. I find nothing to show that they are running a scam, however, I have found that they are neither registered in the state of Delaware nor regulated by either the CFTC or the SEC. I'm also leery of much too good to be true claims, wherever they are found on the web.

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